“When the market limped into the weekend after a dreary start to the new year, one of the biggest casualties was the computer hardware sector. Considering that the high-flying (AAPL: 177.64, -2.41, -1.3%) is one of its more prominent members, that is saying something,” Michael Kahn reports for Barrons.
“Apple has been the flagship tech stock for quite some time so let’s take a look at where it is today. Clearly, the long-term trend remains up here. Further, it has continued to forge higher highs and higher lows — the classic definition of a bullish trend — despite the sector and broad market’s inability to do the same,” Kahn reports.
“In other words, don’t bet against this winner just yet. What needs to be monitored is the waning of price momentum and increase in selling pressure over the past week because if Apple succumbs to the bear then the rest of the sector does not have a chance,” Kahn reports.
“With all facets of the technology sector, minus a few individual exceptions, sporting negative patterns or declining trends, investors should approach it with great skepticism. It is always a good idea to remain open to the possibility that a bottom is near but if tech is walking like a bear and growling like a bear then you know the rest,” Kahn reports.
Full article here.